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PAS 2017 Analysis: GECAS and BOC Aviation Become First 737 MAX 10 Customers

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PAS 2017 Analysis: GECAS and BOC Aviation Become First 737 MAX 10 Customers

Image Courtesy of Boeing

PAS 2017 Analysis: GECAS and BOC Aviation Become First 737 MAX 10 Customers
June 19
04:41 2017

PARIS – Aircraft lessors GECAS and BOC Aviation became the first customers for Boeing’s upgraded 737 MAX 10 Monday at the 2017 Paris Airshow, placing orders for 20 and 10 of the type respectively.

Boeing launched its largest 737 MAX variant at the Airshow earlier Monday morning, announcing that it had 240 orders and commitments from 10 customers at PAS.

The 737 MAX 10 is the newest and largest member of the 737 MAX family, seating 230 passengers in a single class configuration (and 188 in a two-class configuration)

GECAS converts existing orders


GECAS’ order was a conversion of existing orders for the 737 MAX, of which GECAS had purchased 170 (all 737 MAX 8 jets). It is the largest lessor in terms of orders for the MAX family, while Airbus has several lessors that have ordered more than 200 aircraft.

The Ireland-based lessor also has hundreds of 737 Next Generation (737NG) aircraft in its portfolio and has ordered more than 700 Boeing aircraft in its lifetime.

“This 737 MAX 10 order further enhances our fleet with the newest technology, offering our customers commonality along with increased range and available seating,” said Alec Burger, President and Chief Executive Officer of GECAS. “Combining the increased capacity of the 737 MAX 10 and the CFM International LEAP-1B engines offers our customers many benefits.”

“This 737 MAX 10 order further enhances our fleet with the newest technology, offering our customers commonality along with increased range and available seating,” said Alec Burger, President and Chief Executive Officer of GECAS. “Combining the increased capacity of the 737 MAX 10 and the CFM International LEAP-1B engines offers our customers many benefits.”

BOC Aviation makes a new commitment


In contrast, BOC Aviation’s memorandum of understanding (MoU) for 10 new 737 MAX 10s adds to the existing order book of 74 737 MAX 8 jets that BOC first acquired back in August 2014. BOC is also a major Boeing customer, having ordered more than 300 Boeing jets since the Singaporean lessor was founded in 1993.

“BOC Aviation and Boeing have been partners for more than 20 years, providing the very best airplanes to their customers around the world and the 737 MAX 10, with its lowest seat costs of any single-aisle airplane, will continue this tradition,” said Ihssane Mounir, senior vice president, Global Sales and Marketing, Boeing Commercial Airplanes. “We are honored that BOC Aviation has again placed its confidence in Boeing and the 737 MAX family.”

Lessors are lukewarm on the 737 MAX 10


Despite these initial commitments from lessors, our view is that they will continue to be uncertain about the MAX 10’s prospects vis a vis rival Airbus’ A321neo.

In contrast to the 30 firm orders that Boeing now has for its type, Airbus has 279 firm lessor orders for its A321neo, with at least a few of those lessors including China Aircraft Leasing Group Holdings (CALC) and CIT Group likely to upgrade from their current solitary A321neo buys.

In particular, Steven Udvar-Hazy’s Air Lease Corporation has placed a huge bet on the A321neo, buying 129 frames (out of a total A320neo family order of 140 jets). And Udvar-Hazy has thrown cold water publicly on the prospects for the 737 MAX 10 despite ordering 118 737 MAX jets in all (currently unallocated between variants).

GECAS has 33 A321neos and just committed to 100 additional A320 and A321neo jets while BOC Aviation also has 15 A321neos on order as compared to 10 Boeing 737 MAX 10s under MoU.

Chinese lessor CDB Aviation might be the exception to this rule with no A320neo jets on order yet after buying 48 additional 737 MAX jets earlier today at the airshow including 10 737 MAX 10s and our view is that Asian markets will need all of the large narrowbodies they can get.

But with Airbus nearly outselling the 737 MAX 10 amongst lessors with just one A321neo order at PAS already on day 1, the prospects do not look great.

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About Author

Vinay Bhaskara

Vinay Bhaskara

Senior Business Analyst, Big Airline Enthusiast, Avid Airport Connoisseur, Frequent Flyer, Globetrotter. I Miss Northwest Airlines Every Day. vinay@airwaysmag.com @TheABVinay

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